Commercial real estate transactions are highly complex processes involving large amounts of negotiation. The purchase contracts involved in these transactions are often highly detailed, and they vary significantly from property to property. What may be the case for one property may not be the same for another.
In addition, the parties involved in the transaction vary as well, and that can have a large impact on how the contract looks by the end. If there’s an imbalance of power, for instance, one side may get what it wants while the other has to deal with the consequences.
Regardless of the circumstances, there are several keys to drafting an effective commercial real estate contract.